NYSE and Nasdaq to Increase Resilience of Closing Auction Process for U.S. Equities

NEW YORK--(BUSINESS WIRE)--

The New York Stock Exchange (NYSE) and Nasdaq NDAQ, today announced a framework that will create a more resilient market by providing an additional layer of redundancy for the closing auction of U.S. equities. The exchanges will file the proposals with the Securities and Exchange Commission (SEC).

The new framework is being proposed in response to input from industry participants and regulators so that investors and market participants can be confident in closing prices. Therefore, as a tertiary back-up to its own systems, in the event the NYSE, NYSE Arca or NYSE MKT are unable to run a closing auction in some or all NYSE-listed securities, NYSE will use the resulting price of the Nasdaq Closing Cross in those securities as the official NYSE closing price.

"The role the closing auction plays in establishing reliable closing prices and facilitating liquidity is recognized by market participants and regulators alike," said Tom Farley, NYSE President. "We look forward to working with the industry and the SEC to implement this resiliency plan for the public markets on behalf of investors."

Likewise, as a tertiary back-up of its own systems, if Nasdaq is unable to run its Closing Cross in some or all of the Nasdaq-listed securities, Nasdaq will use the resulting price of the NYSE Arca closing auction in those Nasdaq-listed securities as the official Nasdaq closing price.

"Operating our markets to benefit and protect investors is paramount," said Tom Wittman, Global Head of Equities and President and CEO of The Nasdaq Stock Market, LLC. "We devote significant resources to ensure redundancy, and this is a way to further enhance that. We welcome the opportunity to work with The NYSE to continually strengthen the quality of our US equity markets."

Consistent with standard industry practice, and upon SEC approval of the filings, additional information, including testing dates, will be announced for the exchanges and market participants. As with all rule filings submitted by either exchange, a comment period will allow market participants to provide input during the rule making process.

About Intercontinental Exchange

Intercontinental Exchange ICE operates the leading network of regulated exchanges and clearing houses. ICE's futures exchanges and clearing houses serve global commodity and financial markets, providing risk management and capital efficiency. The New York Stock Exchange is the world leader in capital raising and equities trading.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at www.intercontinentalexchange.com/terms-of-use

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC on February 5, 2015.

SOURCE: Intercontinental Exchange

ICE-EQ

Media contacts:
New York Stock Exchange
Sara Rich
Media@theice.com
212 656 4527
or
Nasdaq
Joe Christinat
joseph.christinat@nasdaq.com
646 441 5121

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